SunTrust Banks Inc., its banking subsidiary and its mortgage unit have agreed to a $160 million penalty in conjunction with a previously issued consent order tied to its servicing practices.
The Atlanta-based company was among several large mortgage servicers that were hit with consent orders in April 2011 from banking regulators.
The consent orders were the result of shoddy handling of foreclosures and loan modifications and required the servicers to correct deficiencies outlined in the Interagency Review of Foreclosure Policies and Practices.
On Friday, the Federal Reserve Board issued a consent assessment order against SunTrust, SunTrust Bank and SunTrust Mortgage Inc.
Included in the order is a civil money penalty in the amount of $160,000,000.
“Except as provided for in this consent assessment order, the Board of Governors hereby releases and discharges SunTrust, the bank, SunTrust Mortgage, and their affiliates, successors, and assigns from all potential liability that has been or might have been asserted by the Board of Governors based on the conduct that is the subject of this consent assessment order, to the extent known to the Board of Governors as of the effective date of this consent assessment order,” the order stated. “The foregoing release and discharge shall not preclude or affect any right of the Board of Governors to determine and ensure compliance with the consent order or this consent assessment order, or any proceedings brought by the Board of Governors to enforce the terms of the consent order or this consent assessment order.”
As part of the order, SunTrust waives its rights to a hearing for the purpose of taking evidence on any matters set forth in the order, a judicial review of the order and any challenge to the validity or enforceability of the order.
SunTrust agreed to a $968 million settlement with the U.S. Department of Justice on June 17 to resolve False Claims Act liability for alleged abuses in its servicing, foreclosure processing and Federal Housing Administration lending.
Another $320 million settlement reached this month with the Justice Department resolved a criminal investigation into claims over its administration of the Home Affordable Modification Program.
